If you’ve been on the Internet, even just for a few hours, in the last few years, you will have heard the term ‘cryptocurrency’ (aka crypto). If you’ve delved a little deeper into crypto, you may have come across Bitcoin.
There are several different kinds of cryptocurrency, and Bitcoin is currently the largest. As popular as it is, it’s not easy to get your head around Bitcoin. You might have no idea what it actually is or how it works.
Look no further! This Bitcoin 101 guide will teach you all of the basics you need to know as a Bitcoin beginner.
What is Bitcoin?
Bitcoin is a type of cryptocurrency, meaning it is decentralized and exists in a digital form only. It was first created in 2009 but has only recently accumulated a significant amount of investors.
As a decentralized currency, Bitcoin works independently of a central system, such as a government authority or bank. It’s this decentralization that sets Bitcoin and other forms of cryptocurrency apart from normal (fiat) currencies.
How Do You Invest in Bitcoin?
Thankfully, it’s easy to purchase, sell, and trade Bitcoin. Even if you’re a beginner, you won’t struggle to find a trustworthy platform to start your crypto investment journey.
Platforms and apps like Noones enable you to purchase as much Bitcoin as you desire easily and instantly. You can trade your crypto through the marketplace and chat with your friends on the app.
To own and manage Bitcoin, you need a digital wallet, which encompasses a public key (an email address or username) and a private key (a password). You’ll use your public key to purchase and receive Bitcoin and your private key for selling and transferring it.
What is Mining?
Mining refers to the validation and processing of cryptocurrency transactions via something known as a blockchain. In simple terms, a blockchain is a platform that records and authenticates cryptocurrency transactions.
Cryptocurrency miners use very powerful computer systems to look at complication algorithms and puzzles that they can solve and add to a blockchain. When a miner successfully adds a solved algorithm or puzzle to a blockchain, they may receive some Bitcoins as a reward.
Can You Use Bitcoin to Purchase Other Things?
You can use your Bitcoin cryptocurrency to purchase a variety of things. The exact goods and services you can purchase with your digital currency depend on whether the associated company accepts Bitcoin as a form of payment.
Currently, not every company accepts cryptocurrencies, but it seems that more businesses are making the shift into crypto year by year. In the next decade, it’s like that cryptocurrency will be accepted at every establishment, retail store, and restaurant.
If you want to use your Bitcoin to purchase some at a facility that doesn’t accept cryptocurrency, you can use an online platform to exchange your Bitcoin for a gift card or prepaid debit card. You can then use these to pay for goods and services. Those of you who sell products online may wish to accept cryptocurrency as a form of payment, too.